Starting December 2014, compute the COLA using a chained version of the consumer
price index for wage and salary workers (CPI-W). We estimate this new computation
will reduce the annual COLA by about 0.3 percentage point, on average. The new COLA
will not apply to DI benefits. It will apply to OASI benefits, except for those of
formerly disabled workers who converted to retired worker status.
graph |
table |
pdf-graph |
pdf-table |
memo (NRC/NAPA)

Starting December 2012, reduce the annual COLA by 1 percentage point, but not to less than zero.
In cases where the unreduced COLA is less than 1 percentage point, do not carry over the unused reduction
into future years.
graph |
table |
pdf-graph |
pdf-table |
memo (Hutchison)